Transformational vs transactional leadership: which is better? A study on employees of international tourist hotels in Taipei City

Abstract

Purpose

This research examines the relationships among transformational/transactional leadership styles (TFLs/TSLs), organizational justice, trust, organizational commitment, and organizational citizenship behaviors (OCBs) in the context of international tourist hotels in Taipei. The purpose of this paper is to establish a comprehensive model of TFLs/TSLs in human resource management and to figure out which is the better leadership style in regards to the hospitality industry.

Design/methodology/approach

A total of 700 questionnaires were distributed to the staff of eight international hotels, yielding 358 valid responses.

Findings

TFLs/TSLs affect procedural and distributive justice significantly and positively. Managers using TFLs can induce trust of employees. TFLs positively affect organizational commitment through distributive justice and trust, while TSLs induce organizational commitment through distributive justice. Distributive justice has directly positive impact on trust. Distributive justice-organizational commitment is a positive link. Interestingly, TSLs influence organizational commitment negatively and significantly. As expected, trust can lead to organizational commitment and both trust and organizational commitment have positive impact on OCBs.

Originality/value

The results could be used as the basis for improving human resources management in such a collectivistic culture as Chinese society.

Citation

Dai, Y.-D., Dai, Y.-Y., Chen, K.-Y. and Wu, H.-C. (2013), "Transformational vs transactional leadership: which is better? A study on employees of international tourist hotels in Taipei City", International Journal of Contemporary Hospitality Management, Vol. 25 No. 5, pp. 760-778. https://doi.org/10.1108/IJCHM-Dec-2011-0223